• • Continuation of the long-term trend in the growth of market shares, strengthening of the position of a market leader in IT distribution, household appliances and consumer electronics;
  • Significant fall in debt, the best business efficiency in the industry;
  • The toy segment has noted high organic growth;
  • After launching the new distribution centre, AB is fully prepared for taking advantage of the dynamic increase in the value of the e-commerce market.

  Summary of financial results for Q1 2016:

(*) Values corrected for the logistics centre migration cost (transitional)

In the period from January to March 2016 (Q3 of FY2015/2016) AB Group, the largest distributor of IT solutions, household appliances and consumer electronics in Central and Eastern Europe has noted over 1.7 billion PLN in revenues, confirming its very strong position in the market, as well as the strength of its long-term growth strategy, which shows in particular in the very challenging and less predictable market environment. The EBIDTA score, after correcting for the costs of migrating the company to the new logistics centre in Magnice (which is an event of a transitional nature) has increased by approximately 5.2% y/y, to 25.7 million PLN. Consequently, the corrected net profit amounts to 13.4 million PLN. The comparability of financial results year-to-year is made even more difficult due to the fact that since Q4 2015 the depreciation costs of the new distribution centre have to be calculated (approx. 1 million PLN/quarter), the costs of financing of the new investments also have to be factored in the final calculation.

“Statistically speaking, every third product in the IT industry, for example laptop, PC or processor purchased in Poland, Czech Republic or in Slovakia passed through warehouses of AB Group, and we are operating on a scale of 7 billion PLN in revenues per year. We deliver our products to over 30 countries, where we are able to develop our sales, thanks to our healthy relationships with clients, operational efficiency, know-how, accumulated over the course of 25 years, investing in innovations, our leading position in the e-commerce solution sector, as well as the broadest range of product portfolio (96 000 products), which are readily available in our warehouses, and not only in our offer”, said Andrzej Przybyło, Chairman of the Board of AB S.A.

“The results for the last quarter confirm the business and financial strengths of AB Group. We keep a very high profitability margin over our competition and we reduce our debts. In Q1 2016, the net value of AB Group’s debt was reduced by 75 million PLN, or 17% compared to the value for December 2015. Moreover, our debts are safe and diversified, and the significant portion of it is based on long-term bonds”, added Grzegorz Ochędzan, Chief Financial Officer at AB S.A.

The AB Group, as a leading entity in the IT solutions distribution market in CEE region is chosen as a regional partner in prestigious contracts, such as in the case of Apple and Microsoft. The Group also has unique opportunities to develop mutually beneficial large-scale cooperation with global companies such as HP or Lenovo. In Q1 2016, AB Group has signed new or expanded the existing distribution contracts with companies such as OKI (printers and printing consumables), Huawei (telecommunication accessories), Trust (gaming accessories), Kaspersky (software subscriptions), Sophos (IT security solutions).

The AB Group initiates and develops business projects on a local and European scale. It is active in every channel, offering the broadest selection of products, as well as the best e-commerce solutions, at the same time managing the largest franchise network in the entire CEE region (1 600 points of sale). Thanks to its successful business diversification, the AB Group is a leading player in Poland, Czech Republic and in Slovakia in telecommunication products (accessories, GPS navigations, fixed and mobile telephony, smartphones), photography products and IT solutions. The AB Group builds a strong position in the toy distribution segment (a growth of 48% y/y), as well as household appliances and consumer electronics (a growth of 25% y/y). The company also increases its share in the advanced products sector (servers and storage, digital signage, security, software, networking, power supply).

“The value of the digital signage segment of the AB Group has grown by 30% year-to-year. We have a comprehensive product portfolio, as well as a highly qualified group of experts, including world-class engineers. We carry out the projects only in cooperation with our trading partners, and among our key clients are large companies in the fuel industry, retail and gastronomy. Digital signage is just one of the many interesting and prospective areas of operation for AB Group”, Chairman of the Board, Andrzej Przybyło, emphasised.

The AB Group is also able to dynamically develop its operations in relatively new distribution areas, where the company already established its structures and gained the necessary know-how. The toy segment (Rekman – a subsidiary of AB Group) is a good example.

“In Q4 2015 the company noted spectacular growth in revenues and profits, Q1 2016 was also very successful. We also see the opportunities for dynamic growth in the upcoming quarters. Of course, the distribution of this product range is not that significant in the overall revenue of the AB Group; however, in the upcoming reporting periods it will surely be more visible in the published figures”, said Andrzej Przybyło.

In the upcoming years, a growth in the e-commerce market in Europe, with the most significant change in the CEE region, is envisioned. In Poland alone, the value of the e-commerce sector may increase from approx. 32 billion PLN as of now, to up to 81 billion PLN in a few years.

“We are expecting a new situation in the e-commerce distribution market. Those who are able to offer the internet-based stores a full range of distribution services, such as for example dropshipping, will be the only ones to win. Thanks to the new AB Distribution Centre in Magnice, which was officially launched recently, the Group uses state-of-the-art technologies and is ready for taking advantage of the opportunity brought about by the accelerating changes in the structure of retail channels structure”, Andrzej Przybyło, Chairman of the Board, emphasised.

On the 10th of May 2016, the AB Group has officially launched its newest and largest investment to date – the Distribution Centre in Magnice near Wrocław. The usable area of the facility amounts to four full-sized football fields, and it has twice the volume of the Centennial Hall. The Group has spent almost 129 million PLN on the investment, and thanks to its innovative nature, the project received the EU subsidy of 24.3 million PLN. The warehouse and shipping systems used in the facility are the most innovative solutions currently available on the market, and they fully satisfy the requirements of the most demanding markets, such as e-commerce, tenders and retail network markets. The Centre is located in direct vicinity of the Wrocław Motorway Bypass and DK8 route, as well as near the A4 motorway. This allows for a very efficient and quick distribution of products throughout Europe. The AB Group serves its e-commerce clients in 22 countries, and operates the largest network of trading partners in the CEE region, with over 16000 entities.

The AB Group Distribution Centre in Magnice houses over 16 kilometres of shelves, and the goods are transported on over 5 kilometres of roller conveyors. At the same time, it is also the largest multi-level warehouse in the CEE region, capable of dispatching up to 120 000 shipments every day.

“We built ourselves strong foundations and gained know-how in order to grow on the European distribution market in the upcoming years. The lot in Magnice is only built up in 35%, and the volume of the new warehouse is already 5 times larger than our previous facility in Wrocław. Taking into consideration the most efficient warehouse automation solution, the new Distribution Centre opens new opportunities for the dynamic growth of the Group”, said Andrzej Przybyło, Chairman of the Board.